In terms of the decision of what to do with extra cash, the firm's managers should undertake projects only if _________.

Select one:

a. the firm never pays a dividend.

b. the expected return on the project is equal to that of an asset of similar risk.

c. the expected return on the project is less than that of an asset of similar risk.

d. the expected return on the project is greater than that of an asset of similar risk.

The NPV of leasing versus buying decision is of opposite sign for the lessor regardless of the tax rate and discount rate for the lessee and lessor.

Select one:

True

False

The impact of COVID-19 on exchange listed companies is an example of systematic risk.

Select one:

True

False